Unfortunately, it’s often too late when a tradesman finds out that he needs public liability insurance, and just as bad when he realises that he doesn’t have enough cover for the claims against him. Public Liability Insurance is often considered essential for work places – in fact, some tradesmen and subcontractors won’t be admitted to a work site unless they can show a certificate of currency that indicates the value for their public liability insurance policy.
The fact is, accidents can and do happen on work sites every day.
Public Liability Insurance pays a financial benefit for claims made against a tradesman or subcontractor for damage to someone else or someone else’s property as a result of carrying out their work on a worksite.
Most tradies take out a Public Liability policy for $5 Million.
It sounds like a lot of money, but then we live in a society which is eager to sue. The truth is, if you cause a serious injury to someone or damage important equipment, $5 Million will be enough in some cases, but in others it may not be especially if you work around valuable equipment and in close proximity to a higher incidence of pedestrian traffic near where you are working. For tradesmen and subcontractors who work in these situations, it is worth considering a higher value professional liability policy value.
Certainly, there is a growing trend for tradies and subcontractors to increase their public liability insurance cover to $10 million and it is worth discussing this with your Tradesure insurance advisor to evaluate the risks and the need for a higher level of public liability insurance cover.
Finally, get your own cover.
Tradies and subcontractors cannot rely on the head-contractor’s public liability insurance policy. Even if the initial claim against you is paid on the head-contractors policy, the insurance company will soon discover the facts and they will take action to recover the money they’ve paid on your behalf. Tradesmen and sub-contractors need their own public liability insurance policy.
Quick Facts:
-Tradesure specialises in insurance for tradesmen and subcontractors including partnerships and sole operators large and small.
-Public Liability Insurance may be paid monthly at no extra cost.
-$5 Million Public Liability Insurance Policies begin at $41.74 per month.
-$10 Million Public Liability Insurance Policies are becoming more common, ask us for a quote.
-Conditions relating to ‘restricted work locations’ apply.
-Tradies and subcontractors cannot rely on the head-contractors public liability insurance policy – they must have their own policy.
